Bassett Posts Q3 Sales Gain of 19.7 Percent; Net Falls on 2012 Income Tax Benefit

BassettBASSETT, Va.-Bassett Furniture Industries recorded its fourth consecutive quarter of double-digit sales growth in its fiscal third quarter ending on Aug. 31. Net sales totaled $77.2 million, up 19.7 percent.

Because of a favorable provision related to its 2011 federal tax return recorded in last year's third quarter, the company's net income in the quarter fell 76.5 percent to $556,000. Without that tax benefit, Bassett's net increased 31.7 percent.

Bassett received double-digit sales increases from both its wholesale and retail segments, with the former's sales rising 18 percent and the latter posting a 12 percent gain. Robert Spilman Jr., president and CEO, said the company achieved sales over a "broader spectrum of distribution" and gained market share with independent furniture dealers and in its juvenile products division.

Gross margin in the quarter was slimmed by 230 basis points to 50.2 percent. Selling, general and administrative expenses rose 14.7 percent in dollars but were down 220 basis points as a percentage of sales, to 49.1 percent.

Spilman said Bassett still needs to bolster its bottom line, in particular with its retail segment, which reported an operating loss in the quarter. He said the company is putting in place a new retail operating system that will enable its stores to operate more efficiently. He also said the company remains "focused and optimistic that we will continue to further improve our operating results as we move forward."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.